Cat market to take new direction, says Willis
The catastrophe reinsurance market is on the verge of a major shift in strategy according to a report by Willis Capital Markets & Advisory (WCMA), part of broker, Willis Group Holdings.
The report found predicted that private unlisted vehicles, along with the growing specialist independent catastrophe risk funds, will take an increasing share of the catastrophe risk market in collateralized form over the medium term.
“The current market outlook is very encouraging. Reduced risk spreads as a result of strong investor demand and available capital should stimulate increased issuance from sponsors in the future. In the absence of a significant catastrophe, we would expect the total issuance for this year to be in the $5.5 billion to $6 billion range,” said Bill Dubinsky, head of ILS at WCMA.
